16824-17415 CONTINUES TO BE BROAD RANGE

 

16824-17415 CONTINUES TO BE BROAD RANGE

 

WORLD MARKETS

 

US indices rose 0.3%-1.6% on Monday.

 

Yesterday, Dow and Nasdaq inched up 0.2% while S & P 500 rose half a percent, ahead of the important Fed decision slated today.

 

Fed is widely expected to hike rates by half a percentage point and also announce a plan to cut its roughly $9 trillion balance sheet by $95 billion a month, beginning in June.

 

The March job openings data showed a record 11.5 million openings. March’s factory orders data showed a better-than-expected rise of 2.2%.

 

US 10-year treasury yield eased 1 bps to 2.975%. Dollar index eased 0.1% to 103.45. Germany’s 10-year bund yield rose above 1% for the first time since 2015. Gold inched up 0.2% to $1867 per ounce. The 10-year U.S. Treasury yield hit 3% on Monday, for the first time since late 2018

 

Brent crude fell 1.6% to $105.82 and WTI eased 1.1% to $103.51 per barrel.

 

European markets gained 0.2%-1.8%.  On Monday, European markets closed sharply lower, digesting weak economic data out of China and Germany, and a sudden “flash crash” in Sweden’s OMX 30 index.

 

AT HOME

 

After falling a percent in the initial trade, benchmark indices recouped most of the losses through the session to end lower by a fifth of a percent. Sensex settled at 56975, down 85 points while Nifty lost 33 points to finish at 17069. Nifty mid-cap and small-cap indices fell 0.6% and 1.3% respectively. BSE Consumer Durables index tumbled 2.4%, becoming top loser among the sectoral indices, followed by 1.7% lower Telecom index. Metal index was the top gainer, up 0.8%, followed by 0.3% higher Basic Materials and Utilities indices.

 

FIIs net sold stocks and index futures worth Rs 1853 cr and 790 cr respectively but net bought stock futures worth Rs 849 cr. DIIs were net buyers to the tune of Rs 1951 cr.

 

Rupee depreciated 9 paise to end at 76.51/$.

 

Tata Steel's revenue beat estimate. Titan was a mild miss on operational performance. Hero MotoCorp disappointed on revenue as well as operational front. Britannia beat estimates on revenue and operational front.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down 0.1% and 0.9% respectively while Shanghi is shut for a holiday. SGX Nifty is trading around 17080, suggesting a flattish start when compared to Monday's close of Nifty futures.

 

In Monday's report we had reiterated the view that 16824, the low made in April, continued to be immediate support while 17415, the top made last week, which roughly coincided with 20-DMA, was the immediate hurdle.

 

Nifty, after touching a low of 16917, rebounded to end at 17069.

 

16824, the low made in April, continues to be immediate support, upon breach of which,  16600 and 16200, the 61.8% and 78.6% retracement levels of the entire 15671-18115 upmove, would be next downside levels to eye; 17415, the top made on 21st April, continues to be immediate hurdle.

 

For Banknifty, 35511, the low made last week, is the immediate support, upon breach of which, 35016, the bottom made on 28th March would be the next downside level to eye; 36719, the top mad last week, is the immediate hurdle.